U.K.’s Pool Re goes "all risks" on terrorism coverage

Pool Reinsurance Co. Ltd., the United Kingdom’s government-backed insurance facility for terrorism-related risks, will in future offer a much broader range of cover on an "all risks" basis, reports the Association of British Insurers (ABI). The change in scope of cover will be effective almost immediately. The ABI says this latest development follows extensive discussions between insurers, insurance buyers and the government.Pool Re previously covered only fire and explosive damage. Coverage has now been extended to include biological contamination, impact by aircraft as well as flood damage. Nuclear contamination resulting from terrorism will be added to the scope of cover as from the beginning of next year. The new agreement with the government will also see insurers’ maximum liability per terrorism event capped based on individual marketshare.